Franklin Advisers, Inc., is a wholly owned subsidiary of Franklin Resources, Inc. (NYSE: BEN), a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Fiduciary Trust, Darby and Bissett investment teams. The San Mateo, CA-based company has more than 60 years of investment experience and approximately $681 billion in assets under management as of January 31, 2011. For more information, please call 1-800/DIAL BEN® or visit franklintempleton.com.

FRANKLIN UNIVERSAL TRUST ASSET ALLOCATION at JANUARY 31, 2011

SECURITY

MARKET
VALUE

PERCENTAGE
OF FUND 1

High Yield and Investment Grade Corporate Bonds & Preferred

$150,508,733

69.0%

Utilities Common and Preferred Stocks

$64,024,251

29.4%

Other Investments

$1,137,605

0.5%

Cash & Other Net Assets

$2,398,766

1.1%

Total Investments 1,2

$218,069,355

100.0%

MARKET
VALUE

PERCENTAGE
OF FUND 1

10 LARGEST HOLDINGS BY ISSUER

Southern Co.

$4,514,400

2.1%

Centerpoint Energy Inc.

$4,467,090

2.0%

Dominion Resources Inc.

$4,354,000

2.0%

HCA Inc.

$3,671,585

1.7%

Entergy Corp.

$3,608,500

1.7%

Alliant Energy Corp.

$3,158,600

1.4%

Exelon Corp.

$2,975,700

1.4%

Duke Energy Corp.

$2,860,800

1.3%

Pinnacle West Capital Corp.

$2,849,700

1.3%

Edison International

$2,721,000

1.2%

Total 2

$35,181,375

16.1%

% OF GROSS ASSETS IN DEFAULT:
ISSUER3

MARKET
VALUE

PERCENTAGE
OF FUND 1

Fontainebleau Las Vegas

$14,000

0.0%

Station Casinos Inc.

$240

0.0%

Total 2

$14,240

0.0%

Note: The value of these defaulted securities is reflected in the Fund's net asset value. Percentages are rounded.

Number of positions

224

NAV per share

$ 7.01

4

Market price per share

$ 6.37

4

Number of shares outstanding

25,131,894

Total net assets

$ 176,069,354

1 Percentage of total investments of the Fund. Total investments of the Fund include long-term and short-term investments and other net assets, excluding long-term debt issued by the Fund.

2 Total figures may not represent exact sum of items as a result of rounding.

3 Includes issuers that have defaulted or have missed scheduled bond payments.